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Diekow Productions manufactured and sold 1,000 products at $11,000 each during the past year. At the beginning of the year, production had been set at 1,200 products; direct materials standards had been set at 100 pounds of direct materials at $2 per pound for each product produced. During the year, the company purchased and used 98,000 pounds of direct materials; the cost was $2.04 per pound. Calculate Diekow Production's direct materials price and quantity variances for the year. Direct materials price variance: $__________ (Favorable / Unfavorable / No effect) Direct materials quantity variance: $__________ (Favorable / Unfavorable / No effect)
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